VCT, EIS and SEIS compared

The reliefs for venture capital trusts (VCTs), the enterprise investment scheme (EIS) and the seed enterprise investment scheme (SEIS) are similar in many respects, but there are some significant differences. The table below highlights the main reliefs.

VCT

EIS

SEIS

Annual investor limit

£200,000

£1 million*

£100,000

Income tax relief for subscribers

30%

30%

50%

Clawback if held for less than

5 years

3 years

3 years

Reinvestment relief period - before gain made - after gain made

n/a n/a

1 year 3 years

n/a

n/a

Tax free dividends?

Yes

No

No

Tax free capital gains?

Yes

Yes (after 3 years)

Yes (after 3 years)

Tax relief for losses?

No

Yes (after 3 years)

Yes (after 3 years)

IHT business property relief?

No

Yes

Yes

* a further £1 million is available for investment in knowledge-intensive companies.